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Nearly $3 million in oil and gas land sales

Press Release – 

For Immediate Release
2014MNGD0050-001192
August 14, 2014

 

Ministry of Natural Gas Development

VICTORIA – The August 2014 natural gas and petroleum rights sale resulted in nearly $3 million in bonus bids, contributing to the fiscal year total with over $43 million in total land sales.

The Aug. 13 sale offered 13 parcels in northeast B.C. covering 7,737 hectares. All parcels were sold, with an average price of $387 per hectare.

Key parcels in this month’s sale included:

  • Two drilling licences in the Buick Creek area, about 65 km northwest of Fort St. John. Collectively, these two parcels earned more than $832,000 in tender bonus at average prices ranging from $359 to $376 per hectare.
  • One drilling licence in the Flatrock area, about 25 km northeast of Fort St. John. This parcel earned more than $417,000 in tender bonus at an average price of $528 per hectare.
  • One lease about 15 km north of Dawson Creek. This parcel earned more than $548,000 in tender bonus at an average price of $2,116 per hectare.

Drilling Licences provide the exclusive right to explore for petroleum and natural gas by drilling wells, and are acquired by the successful bidder at the Crown sale. Primary terms are three, four or five years, depending on location.

Leases provide the exclusive right to produce petroleum and natural gas. They are acquired by the successful bidder at the Crown sale or selected from permits and drilling licences. Primary terms are five or 10 years, depending on location.

Natural gas and petroleum activities play a vital role in B.C. by employing thousands of British Columbians. Revenues from rights sales provide immediate economic benefits, funding social programs and infrastructure development in communities throughout the province.

The next sale, scheduled for Sept. 10, 2014, will offer 28 parcels covering 14,728 hectares.

Complete results of the sale are posted at:

http://www.empr.gov.bc.ca/Titles/OGTitles/SaleResults/Pages/default.aspx

Media Contact:
Sandra Steilo
Ministry of Natural Gas Development
250 952-0617

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